With California first-time jobless claims hitting record high
numbers, the persuasive words of John Kabateck, Executive Director,
California National Federation of Independent Business, signify
an urgent call to action: “We need to allow small businesses
to do what they do best, which is to create jobs and stimulate
the economy.” As evidenced by the recently released state-commissioned
“Cost of State Regulations on California Small Businesses
Study,” now is the time for re-assessing burdensome local
and state regulations that negatively impact small businesses.

Eye-opening facts from this study include the following: The total
cost of regulation to the State of California is $492.994 billion,
almost five times the State’s general fund budget, and almost
a third of the State’s gross product. The cost of regulation
results in an employment loss of 3.8 million jobs which is one-tenth
of the State’s population. Since small businesses constitute
99.2% of all employer businesses in California, and all of non-employer
business, the regulatory cost is borne almost completely by small
business. The total cost of regulation was $134,122.48 per small
business in California in 2007, labor income not created or lost
was $4,359.55 per small business, indirect business taxes not
generated or lost were $57,260.15 per small business, and finally
roughly one job lost per small business. The total regulatory
cost of $492.994 billion translates into a total cost of $38,446.76
per household, or $13 ,052.05 per resident. The total cost per
household comes close to the median household income in California.
Clearly, the “Cost of Regulation” is everyone’s
problem.

Moreover, the study enlightens by stating: “The ultimate
drivers of growth and economic prosperity are innovation, economic
risk taking, and investment. The majority of this comes from small
business. Legislative and regulatory mandates often result in
practices and enact polices that raise the costs of operating
for small business or provide a deterrent to small business growth
and hence provide disincentives for economic risk taking and entrepreneurship.”
The case for regulatory reform is also credibly and forcefully
explained in the study, as follows: “Since small businesses
are the lifeblood of California’s economy constituting 99.2%
of all employer businesses, efforts to make the regulatory environment
more attractive will make California a more attractive state for
doing business. This in turn will improve the state’s output,
employment, labor income, indirect business taxes, economic climate,
quality of life, living standards, and gro wth prospects.”

I am a small business owner and understand the difficulties faced
on a daily basis due to overregulation. Small businesses need
to be promoted and expanded for our communities and families to
continue prospering and thriving in these difficult economic times.
They are the driving force for our economy encompassing the dreams
of individuals to create lives for their families, jobs for their
neighbors, and security for the community. As an elected official,
I will continue to support streamlined processes that encourage
economic growth in traditional and emerging industries, thereby
increasing employment opportunities.

By way of example, as an Anaheim Councilman, I and my council
colleagues have diligently encouraged and supported improvements
to various permitting processes within our Planning Department
that have caused fees to be drop, shortened time frames, and resulted
in significant cost savings, e.g., reducing time spent processing
conditional use permits, eliminating pre-file applications, waiving
parking studies where appropriate, creating a library of standard
conditions, flexibility in conditions of approval, etc. Our Anaheim
Public Utilities Department “Advantage Services” program
also delivers a range of incentives, rebates, and simple tips
designed to help our business customers save energy, water, and
money on their utility bills. Additionally, Anaheim launched its
first J.D. Power and Associates Customer Satisfaction survey in
2008 resulting in positive cost saving efficiencies.

We can all make a difference in creating job growth and stimulating
economic turnaround by voicing our support for much-needed regulatory
reform at all levels of government.